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Ispire Q3 2025 Earnings Report
Ispire Technology Inc. reported a decrease in revenue and net loss for Q3 2025 compared to the previous year, with a notable increase in gross profit margin for the nine-month period.
Key Takeaways
Ispire Technology Inc. experienced a decrease in revenue and an increased net loss for the three months ended March 31, 2025, primarily due to reduced sales of vaping products in North America and Asia Pacific, despite an increase in sales in South America. The company's gross profit margin decreased for the quarter but improved for the nine-month period.
Revenue decreased by $3.8 million, or 12.7%, for the three months ended March 31, 2025, compared to the same period last year.
Net loss increased to $(10,856,495) for the three months ended March 31, 2025, from $(5,925,123) in the prior year.
Gross profit decreased by $1.3 million for the three months ended March 31, 2025, with gross margin decreasing from 20.4% to 18.2%.
Operating expenses increased by $3.58 million, or 23.3%, for the three months ended March 31, 2025, driven by higher credit loss expenses and professional fees.
Ispire
Ispire
Ispire Revenue by Segment
Ispire Revenue by Geographic Location
Revenue by Segment
Vaping Products (North America) Revenue
CapyFin.comRevenue by Geographic Location
Europe Revenue
CapyFin.comNorth America (U.S. and Canada) Revenue
CapyFin.comAsia Pacific (excluding PRC) Revenue
CapyFin.comAfrica Revenue
CapyFin.comSouth America Revenue
CapyFin.com Forward Guidance
The company anticipates continued challenges and opportunities, including navigating regulatory changes, expanding into new markets, and managing supply chain dynamics.
Positive Outlook
- Ability to manufacture cannabis hardware in Malaysia offers a substantial discount compared to China, providing a competitive advantage.
- Customers are seeking to diversify production supply chains out of China and into Malaysia, potentially increasing demand for Ispire's Malaysian operations.
- Submission of PMTA application for a disposable ENDS product signals re-entry into the US ENDS market.
- Plans to amend or resubmit PMTA application with age-gating technology, and submit additional PMTA applications for pod-based ENDS systems.
- Current cash and future cash flows from operations and bank loan are believed to be sufficient to meet working capital needs for the next 12 months.
Challenges Ahead
- Changes in regulatory environment for e-cigarettes and vaping products could severely disrupt business.
- Imposition of new laws or regulations in major customer countries could adversely affect business.
- Increased excise taxes on products could negatively impact pricing and value proposition.
- Greater price gap between legal and illicit vaping products could incentivize consumers to buy illicit products.
- Tariffs on Chinese-made products, which constitute a significant portion of cost of revenue, could increase costs and affect gross profit margins.